CEO and CIO Mark Coombs in 1992 helped start an early emerging-markets-debt strategy at ANZ Bank and then with seven others bought it out in 1999 to form Ashmore. The firm went public in 2006 with a philosophy of keeping salaries modest and bonuses sizable—but basing them substantially on multiyear strategy outperformance and paying a big portion in Ashmore stock units with a lengthy vesting period. That has protected firm profitability, even amid a 41% drop in assets under management between late 2019 and March 2023. It has also helped with talent retention and recruitment; Ashmore’s 100-plus investment professionals average about eight years with the firm and 18 in the industry.
What began as one strategy has evolved into six investment themes, all focused on developing markets: local currency; sovereign, corporate, and blended debt; equities; and alternatives. The equity offerings have fared well of late but remain a fraction of Ashmore’s USD 58 billion in assets, as do alternatives. Bond strategies still predominate; while their short-term performance can seesaw because of an aggressive style, five-year results tend to be competitive.
Ashmore’s biggest challenge will be replacing Coombs, who will help pick one or more successors within the next five years or so.